No loss to RIL, if gas given at $2.34: RNRL

Anil Ambani-led Reliance Natural Resources Limited on Tuesday contended before the Supreme Court that it has an 'unqualified' right to get gas at $2.34 per unit for 17 years from Reliance Industries Limited which will along with the government not suffer any loss at this rate.

"There would be no impact on the government at all and it would suffer no loss whatsoever. RIL would also make a profit of Rs 30,000 crore (Rs 300 billion) at this rate," RNRL said in an affidavit before a bench headed by chief justice K G Balakrishnan.

"In case the government values the gas at 4.20 per mmBtu and RIL sells gas to RNRL at the price of 2.34 per mmBtu, the government would still obtain its full share of the profit on gas," it said.

"RNRL submits that it has an unqualified right to get 28 MMSCMD for 17 years at the price of $2.34 mmBtu," the company argued.

It pleaded that RIL is trying to inflate its profit by saying that the gas can only be sold at $4.20 per unit.

"The submission of RIL that the gas can only be sold at 4.20 per unit is only an attempt to inflate its profit. The government would obtain no additional benefit from such pricing and the net effect would only be enrichment of RIL," the company said in its four page affidavit.

Image: Anil Ambani